Markets marginally higher led by IT shares

IT and banking shares among major movers

Markets have recovered from the day's lows and are trading marginally higher led by gains in software shares tracking weakness in the Indian rupee. The Sensex, after touching a high of 19,648 has pared some gains and is now up 36 points at 19,616. Nifty is flat at 5,941.

Broader markets however underperformed the benchmark index. BSE mid-cap index has slipped 14 points to 6,791. BSE small-cap index is down 19 points at 6,840.

The rupee today depreciated by 22 paise to 53.44 against the dollar in early trade on the Interbank Foreign Exchange on fresh demand for the US currency.

Meanwhile in Asia, most bourses gained smartly following data from China, although the Japanese market came under pressure as electronics giant Sony Corp. skidded after reporting earnings. Hang Seng, Shanghai Composite and Kospi were up 0.3-1.2% each. Nikkei shed 1.5% at 11,186.

Power generation major NTPC rose 1% at Rs 150 after strong investor response to the divestment of Government of India's 9.5% stake in the company through the stock exchanges mechanism on Thursday.

Capital goods stocks edged higher on renewed buying. Pharmaceutical major Cipla extended Thursday's losses triggered by Managing Director Dr. Y K Hamied announcing his resignation at the time of the announcement of the company's Q3 December 2012. Cipla slipped 2.5% at Rs 384.

ACC and Ambuja Cements declined following the quarterly numbers. Acc was down 2% at Rs 1318. Ambuja was down 4.5% at Rs 191.

Tata Steel advanced 0.2%. The company on said it has started an advanced facility to develop crash-resistant steels designed to make cars safer and more fuel-efficient.

In the Sensex, banking and IT shares gained. TCS and HDFC Bank accounted for a 35 points gain on the Sensex. On the other hand, Reliance, ICICI Bank and Coal India were seen to exert pressure on the benchmark index.

BSE market breadth was marginally negative. Out of 2383 stocks traded, 1266 shares declined while 981 shares advanced.